By Charles Bassey Silas
Uyo —The warning by Air Peace Chairman, Allen Onyema, that Nigerian airlines may go “extinct” within 30 days without urgent government intervention has thrown a spotlight on the survival prospects of state-owned carriers, with Akwa Ibom’s Ibom Air squarely in the eye of the storm.
Speaking to aviation journalists in Lagos on Wednesday, Onyema described the current operating environment as an “existential crisis” worse than what led to the collapse of Nigerian Airways.
He cited high costs, multiple taxation, foreign exchange challenges and labour disputes over the five per cent Ticket Sales Charge, TSC, as threats to the industry.
For Ibom Air, which commenced operations in 2019 as the aviation flagship of the Akwa Ibom State Government’s ARISE Agenda, the crisis presents both immediate risks and long-term strategic questions.
Rising Costs, Tight Margins
Like other domestic operators, Ibom Air contends with jet fuel priced in dollars, expensive aircraft leases, and rising airport and navigation charges. Industry analysts say these costs have more than doubled in the last two years.
With interest rates also at record highs, any expansion plan requiring borrowing becomes more expensive.
“The same cost structure affecting Air Peace is affecting Ibom Air. The only difference is who pays the bill at the end of the month,” an aviation consultant in Uyo told
Labour Disputes and Service Disruption Risk
The current 21-day standoff between airline operators and aviation unions over non-remittance of TSC puts all carriers at risk of picketing.
For Ibom Air, which operates out of Victor Attah International Airport, Uyo to Lagos, Abuja and other hubs, any industry-wide disruption would immediately affect passengers and revenue in Akwa Ibom. The airline would also face renewed pressure on staff welfare from its unions.
Market Share Opportunity Amid Collapse
Onyema revealed that no fewer than 50 carriers have ceased operations in recent years. That creates a potential upside for Ibom Air.
With fewer competitors, the airline could consolidate its position on key domestic routes and attract more passengers.
However, that opportunity only materializes if Ibom Air itself can weather the financial storm. A weakened industry also means fewer interline and codeshare partners, higher insurance premiums, and tougher aircraft leasing terms.
The Government Buffer
Unlike privately owned airlines, Ibom Air enjoys direct backing from the Akwa Ibom State Government. That subvention has kept the airline stable and enabled it to maintain a reputation for punctuality and safety.
But with the state government also funding other critical projects under the ARISE Agenda, continued bailouts for the airline could become a fiscal burden. The question of long-term commercial sustainability will inevitably arise.
What Stakeholders Are Saying
Aviation stakeholders in Uyo say the Federal Government must urgently address foreign exchange access, reduce multiple taxation, and resolve the TSC dispute to prevent a total collapse.
“Government needs to decide if it wants a viable aviation sector or not. Ibom Air is doing well, but no airline can survive in an environment where you spend N30 million to make N10 million,” a former airline manager said.
The Road Ahead
As the industry faces what Onyema calls its darkest hour since Nigerian Airways, Ibom Air’s fate will be a test case for state-owned aviation in Nigeria.
For now, the airline continues operations. But with the 30-day timeline hanging over the sector, all eyes are on Abuja for policy interventions — and on Uyo to see how far state support can stretch.
If the crisis deepens, Ibom Air may not just be fighting for profit, but for the survival of one of Akwa Ibom’s most visible investments.
ACAKS News Desk
